2015
Pension
Newsletter
How to enjoy
an active
retirement
ALSO INSIDE
The importance
of planning
for aged care
What is a reversionary pension?
State Super update
Investment market
overview
2015 Federal
Budget update
State Super update
The NSW Government’s Amalgamation Project
As previously communicated, the NSW Government
announced its intent to amalgamate the funds
management activities of the State’s financial assets
within NSW Treasury Corporation (TCorp) in March
2014. For State Super, this relates to the defined
benefit1 (DB) assets within the STC Pooled Fund.
In response to this, over the
past year, State Super has been
assessing the benefit and suitability
of outsourcing certain funds
management activities to TCorp.
After a full due diligence process,
the State Super Board resolved to
appoint TCorp as an outsourced
service provider of certain funds
management activities in relation to
DB assets. This arrangement became
effective on 15 June 2015.
TCorp now provide funds
management services in relation
to the Trustee Selection Strategy
(formerly called the Growth Strategy),
which primarily invests the DB assets.
TCorp’s services include undertaking
functions such as recommending
investment managers, conducting
due diligence, funds administration
and operations and reporting
activities.
State Super will maintain the
resources and staff required to
continue to meet our regulatory and
fiduciary obligations, which include
retaining responsibility for member
services and investment governance
(including setting investment
objectives and strategies, risk
management and asset allocation)
for all the State Super investment
strategies. State Super will also
continue to manage the four member
investment choice strategies (Growth,
Balanced, Conservative and Cash)
in which SASS defined contribution
(DC) assets2 are primarily invested
and the two university investment
strategies (University Conservative
Diversified3 and University Cash) in
which university employer reserves
are invested.
1. Defined benefit assets are the assets within the STC
Pooled Fund that support employer reserves which are held
in order to meet the New South Wales (NSW) Government’s
obligation to provide defined superannuation benefits.
2. Defined contribution assets are the assets within the STC
Pooled Fund that support contributions made by members.
3. Prior to 1 September 2015 the University Conservative
Diversified Strategy was called University Diversified.
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Pension Newsletter | 2015
What does this mean for
members?
There is no change to benefit design
or entitlement and all benefits will
continue to be paid in accordance
with the relevant scheme legislation.
All assets, whether they are member
or employer funded will remain in the
State Super Pooled Fund and the
strategy they are currently allocated
to (other than the DB assets which sit
within the Trustee Selection Strategy).
About TCorp
New South Wales Treasury
Corporation (known as TCorp) is
the central borrowing authority for
the State of New South Wales.
In addition to TCorp’s role as the
central financing authority for the
State of New South Wales, TCorp
is also a manager of asset and
liability portfolios on behalf of clients,
providing financial risk management
and investment management
services to the NSW Government
and its constituent businesses.
Investment market
overview
Domestic growth
Europe battles on
Growth in the first half of 2015 was at the lower end of expectations,
prompting the Reserve Bank of Australia (RBA) to make two rate reductions
each of 0.25% during this period. The signals were mixed domestically, with
housing construction and consumer spending being the positives (thanks
largely to low interest rates), and weak business investment the negative.
In a speech given at the time, RBA Governor, Glen Stevens, hinted at the
limitations of monetary policy to drive growth in isolation and the need for more
robust public spending on infrastructure to support growth and confidence.
A modest return to growth is
pleasing, as are budget restraint and
other economic reforms, but the
turmoil over Greece in the middle of
this year has overshadowed these
developments. The protracted
discussions about debt refinancing
have been temporarily concluded.
Greece averted an exit from the
Eurozone by agreeing to a package
of austerity reforms. This opened
the door to European support for
Greek banks and negotiation of
debt relief. It is difficult to envisage a
sustainable solution to Greece’s debt
problem without some level of debt
forgiveness.
The Australian dollar depreciated, especially against the U.S. dollar, on the back
of falling commodity prices and lower interest rates. This helped support net
export figures and provided a positive offset to weaker domestic demand.
The U.S. Federal Reserve
is expected to commence
raising interest rates later
in the year in response to
a more buoyant economy.
U.S. optimism
Falling unemployment and growth in
wages were two of the tell-tale signs
that the U.S. economy was heading
in the right direction. After weak first
quarter growth in 2015, partially due
to harsh winter conditions, a rebound
was expected for the rest of the year,
propelled by the service and housing
sectors and increases in consumer
spending and business investment.
The U.S. Federal Reserve is expected
to commence raising interest rates
later in the year, in response to a
more buoyant economy. It has been
widely telegraphed that the Federal
Reserve would increase interest rates
when the economy has reached a
sustainable growth path. When U.S.
interest rates actually increase it
should come as no surprise to global
financial markets.
Chinese reductions
The Chinese slowdown continues to
cause some concerns as it makes
the transition from dependence
on fixed asset investment to an
economy underpinned by domestic
consumption. Nevertheless the
Chinese authorities have a number
of policy levers available to them
to stimulate the economy, should
this be needed. The stock market
tumble that occurred mid this year
was a result of a significant increase
in margin lending accounts earlier
in the year. Many investors, retail
investors among them, borrowed
heavily to invest in the stock market.
To avoid the volatility in the stock
market spilling over into the economy,
Chinese authorities have stepped in
with extraordinary interventions to halt
the slide, including the suspension
of trading and moving against short
selling.
The impact on the Chinese economy
is uncertain, but expected to be
minimal, because less than 10% of
consumers are invested in equities.
What the markets
are doing
The dramas in both Greece and
China resulted in increased market
volatility around the globe, but the
impact is fading. Corrections will
occur from time to time, which is
common in investment markets.
It is important not to overreact to
short-term events, but to maintain
a disciplined investment approach.
Despite increased market volatility
at the end of the financial year, the
investment returns generated by all of
State Super’s diversified investment
options were well ahead of their
respective objectives for the year
ended 30 June 2015.
Expectations on returns in the
short-term should be kept modest,
however, returns are expected to
start heading in the right direction
leading to a positive outlook for the
longer term.
3
2015 Federal Budget update
Important changes to Social Security rules
Following the announcement in the May 2015 Federal Budget, the Government
has now passed legislation that will see changes to the social security income test
and the asset test thresholds and taper rate. These changes will have financial
consequences for some pension members. The social security income test changes
come into effect from 1 January 2016, while the asset test thresholds and taper rate
changes come into effect from 1 January 2017.
Social security income test
A key change coming from the 2015
Federal Budget that will impact State
Super members is how defined benefit
income will be taken into account under
the social security income test.
The Commonwealth Parliament has
now passed legislation to give effect to
the Budget announcement that the tax
free component (deductible amount)
of defined benefit income streams,
other than those paid from military
schemes, will be capped at 10% under
the social security income test from 1
January 2016. This means that if the
tax free percentage of your SSS, PSS
or SASS fortnightly pension is greater
than 10%, a larger proportion of your
defined benefit income will be taken
into account when applying the relevant
social security income test.
This change may cause a reduction
in Age Pension entitlements for many
State Super pension members who are
income tested, as current deductible
amounts can be as high as 50% or
more.
The Government has announced
that the intention of this measure
is to ensure that a fairer amount
of income received from a defined
benefit income stream is subject to
the income test for the pension. This
measure reverses the unintentional
increase of the deductible amount
which occurred for some individuals
in 2007 when amendments relating to
the tax free amount were made to the
Income Tax Assessment Act 1997.
This change will impact the cash
flow of some State Super pension
members who have been entitled to,
and possibly become reliant on, their
Age Pension entitlements as a regular
source of income.
Although no substitute for regular
Age Pension payments, many who
lose access to the Age Pension as
a result of this income assessment
change, or changes to the assets test
will likely continue to qualify for the
Commonwealth Seniors Health Card
(CSHC). You can obtain further details
from the Centrelink website at www.
humanservices.gov.au/customer/
services/centrelink/commonwealthseniors-health-card.
Lower assets test thresholds
increase
The second change announced
will see an increase to lower assets
test thresholds for singles, couples,
homeowners and non-homeowners.
This change means you (or you and
your partner) can own more assets
and still receive a full pension. Up to
an extra 50,000 retirees are expected
to qualify for a full pension rather
than a part pension as a result of the
change. Table 1 adjacent provides the
current and revised lower and upper
thresholds for a full or part pension.
The following example illustrates how these changes will work:
Lillian is a single Age Pensioner who is also receiving a SSS pension of $60,000 p.a. which has a 50% tax free
component (i.e. $30,000). She has no other income. In determining her Age Pension eligibility, currently the whole
of the tax free component (or the deductible amount) is not counted under the income test, which means only
$30,000 of her income is assessed. Lillian is currently eligible for an Age Pension of nearly $9,500 p.a. (assuming
her assets are also below the relevant lower assets threshold).
From 1 January 2016, the deductible amount is now limited to a maximum of 10% (or $6,000), meaning $54,000 of
her pension will be counted under the income test and as a result, she will no longer receive any Age Pension –
a lost benefit of $9,500 p.a.
4
Pension Newsletter | 2015
The taper rate doubles
Another change will see the taper rate
increase from $1.50 per $1,000 of
assets to $3.00 per $1,000. The taper
rate is the rate by which an individual’s
Age Pension entitlement is reduced
each fortnight for each $1,000 of
assets owned above the lower
assets test threshold. For example, a
couple who own their own home with
assets of more than $500,000 (not
including the family home) will lose
around $73 a fortnight in Age Pension
entitlements.
Upper assets test thresholds
decrease
The implication of the higher taper rate
is that pension entitlements will phase
out more quickly, resulting in reduced
upper assets test thresholds. This
means the maximum value of assets
(excluding the family home) you can
hold to qualify for a part pension will
also reduce. For single homeowners,
this maximum value will be reduced
from $779,000 to $547,000 and for
couple homeowners, this maximum
value will be reduced from $1,156,500
to $823,000. At these points no
pension will be available. There are also
upper thresholds for non-home owners
which are shown in Table 1 below. As a
result of these changes, about 91,000
people are expected to lose their
entitlement to any Age Pension.
While there are changes at the upper
and lower end of the thresholds,
the Government expects that more
than 90% of pensioners (3.7 million
pensioners and other Australians who
receive pension-linked payments) will
either be better off or have no change
to their arrangements.
Who’s better off?
•Couples who own their own home
and have additional assets of less
than $451,500 may receive a
higher pension.
•Couples who don’t own their own
home and have asset holdings up
to $699,000 may also be better off
from January 2017.
•Singles who own their own home
and have additional assets of less
than $289,500 may receive a
higher pension.
•Singles who don’t own their own
home and have asset holdings up
to $537,000 may also be better off
from January 2017.
Table 1: Current and proposed pension assets test thresholds
Status
Current
2017
lower
lower
threshold threshold
Current
upper
threshold
2017
upper
threshold
What to do if you’re not better off
The Government has announced
that anyone who loses their Age
Pension entitlements on 1 January
2017 as a result of these changes
will automatically be issued with a
Commonwealth Seniors Health
Care Card (CSHC) or the Health
Care Card (HCC) for those under the
Age Pension age.
For those who believe they will suffer
a decrease in Age Pension, or lose it
altogether, now may not be the time
to go on a spending spree to reduce
assets as other articles you may have
read recently have suggested. On the
surface, the numbers might suggest
this could be a viable strategy, if you
look at it from an income point of view.
However, you also need to carefully
consider that, depending on what you
spend your money on, spending these
funds may permanently reduce your
money reserves, leaving you exposed
financially if something unexpected
happens to you in the future.
Before making any decisions about
your future, we encourage you to
seek professional financial advice
from a planner who can help you
assess your individual circumstances,
who understands your scheme
entitlements and can help you
navigate the complexities of the
social security system.
Single
Homeowner
$205,500
$250,000
$779,000
$547,000
Non-homeowner
$354,500
$450,000
$928,000
$747,000
Couple
Homeowner
$291,500
$375,000
$1,156,500
$823,000
Non-homeowner
$440,500
$575,000
$1,305,500
$1,023,000
State Super Financial Services (SSFS)
provides financial planning advice
to State Super members and their
families. To make an appointment,
call 1800 620 305.
For more information on the
relationship between State Super
and SSFS, refer to the back page
of this Newsletter.
5
How to enjoy an
active retirement
Most of us look forward to leaving the working world
behind and taking life easy in retirement, but have you
really considered what you will be doing when you get
there? Statistics tell us that once we reach age 65 on
average, men will live for over 19 years and women
over 22 years*, so you will certainly have a lot of time on
your hands. Of course it’s important to have the money
to enjoy those years, but a happy retirement depends
equally on staying active and engaged in a variety of
activities, so we thought we would give you some ideas
that you can use for inspiration.
Take up a hobby
Join a club
Unleash your creative side and stay
productive by taking up a hobby.
It could be sewing, model making,
sculpture, photography, painting,
or a host of other skilled activities.
Hobbies provide fantastic mental
focus, but can also pay dividends
in stress relief and mental health.
Some hobbies, such as dancing
or bushwalking, can also provide
positive physical benefits.
Everyone has a local RSL or leagues
club they can join, but have you
considered the myriad of other clubs
that might be on your doorstep?
These could include:
•sports clubs, such as ten pin
bowling or tennis
•hobby clubs such as model trains
or photography
• book clubs at the local library
•bushwalking or fishing clubs for
those who love the great outdoors.
Try your local council as a starting
point or for sporting interests visit:
www.ausport.gov.au/participating/
find_a_sporting_club.
You’re never too old
to learn
Retirement can be an ideal time to
follow your passions and acquire new
skills, so consider taking a class on
areas of interest you may not have had
6
Pension Newsletter | 2015
time for earlier in life. Apart from the
mental stimulation, it’s a great way to
form new friendships with likeminded
people. To explore more, take a look
at what your local TAFE college or
community centre offers or see if there
is a local U3A (University of the 3rd
Age) association in your area, such as
www.sydneyu3a.org.
Volunteering brings
rewards
As the great Winston Churchill once
remarked; “we make a living by what
we get, but we make a life by what
we give”. Putting some time, skill and
energy into a community or charitable
organisation can be one of the most
rewarding and fulfilling activities you
can do. There is a unique sense
of camaraderie and purpose that
volunteering can bring and it can be
an excellent way to apply skills and
knowledge you’ve acquired during
your working life. Start investigating
how you can get involved at
www.volunteeringaustralia.org.
Satisfy the travel bug
Why not explore your own backyard by
going on leisurely road trips with your
own caravan or motorhome and a wish
list of dream locations around Australia.
For some fabulous tips on planning and
itineraries, visit www.thegreynomads.
com.au or www.driveaustralia.com.
au/racv/suggested-routes.
Of course your wanderlust may also
extend to more exotic overseas
destinations, such as the romance
of Paris, the glitz of New York or the
adventure of Africa. Whatever your
destination, you can enjoy the journey
on an organised group tour or go it
alone and focus on the sights and
*Source: Compiled from Australian Life Tables, 2010-2012, Australian Government Actuary
There is a unique sense of camaraderie
and purpose that volunteering can bring
and it can be an excellent way to apply
skills and knowledge you’ve acquired
during your working life.
experiences that really interest you. For
some great tips on overseas travel, visit
www.smartraveller.gov.au.
Spend quality time with
family
Retirement is also a great opportunity
to focus on loved ones. You can
spend more time socialising with
family members, take a proactive
role in organising get-togethers, or
offer your time and experience in
helping take care of grandchildren.
An increasingly popular option for
getting the generations together is a
‘gramping’ holiday (camping with the
Grandparents!), where you can all take
off to an idyllic and relaxing spot and
share some real quality time away from
the pressures of daily life.
Get into the great
outdoors
Another fantastic option to satisfy the
mind, body and soul is to take up
bushwalking. The stimulation of getting
in touch with the environment can be
a wonderfully regenerating experience.
Beyond that, the fitness benefits
are well worthwhile (without even
feeling like you are working out), and
the joy of discovering the beauty
of Australia’s natural wonders can
become quite addictive. If you want
to take it to another level, you could
even join a bushwalking club. Visit
www.bushwalkingaustralia.org
to find a club near you.
Stay fit and healthy
There is no need to be obsessed
with fitness in retirement, but
following good healthy habits and
looking after your body is essential
to maximising enjoyment. Thirty
minutes of moderate exercise per
day is advisable to help your cardio
health, weight control and flexibility.
A brisk walk with the dog, some
vigorous gardening or cycling can
make exercise more enjoyable.
Alternately, you could introduce
a more social aspect by taking
exercise classes, such as Pilates
or Yoga.
Start planning for a
full life
If the ideas and options here
have got you thinking, then start
researching and planning now to
maximise enjoyment and make the
most of every moment in retirement.
...following good healthy
habits and looking after
your body is essential to
maximising enjoyment.
7
What is a
reversionary pension?
and who can receive it?
In the event of your death, your spouse or de facto partner
may be eligible for a reversionary pension. This means that
part of your pension continues to be paid to your spouse or
de facto partner – for the rest of their life. These payments
are indexed to the CPI every year.
An eligible spouse is defined as the
person you are married to or a de
facto partner. An eligible de facto
partner is a person, of the same or
opposite sex, who is either:
•in a registered relationship or
interstate registered relationship
with the member within the
meaning of the Relationship
Register Act 2010, or
•in a de facto relationship (within
the meaning of that term in the
Interpretation Act 1987) with
the member. For this purpose, a
person is in a de facto relationship
with another person if they have
a relationship as a couple living
together, and they are not married
to one another or related by family.
Generally, your spouse or de
facto partner will only qualify for a
reversionary pension if you were in
the relationship before you retired
and remained in that relationship
until your death. However, there are
two exceptions to this rule:
•if a child of that relationship was
substantially dependent on you at
any time during the relationship or
not yet born when you died
•you retired due to invalidity and
the relationship began before your
normal retirement age and at least
three years before your death.
For SASS Pension members
If you are a pension member of the
State Authorities Superannuation
Scheme (SASS), your spouse or
de facto partner may receive a
reversionary pension.
This may be the case if you are a
former member of the:
• Local Government Pension Fund
• Provident Fund
• Insurance Fund
• Benefits Fund
•Railways Superannuation Account
(Ten and a Penny Scheme)
• NSW Retirement Fund*
• Transport Retirement Fund.*
* If you elected for a reversionary pension when
you started your pension.
For more information, please
refer to:
•SSS Fact Sheet 11: Death of a
scheme member after retirement
• PSS Fact Sheet 6: Death Benefit
• SASS Fact Sheet 8: Death Benefit
which are available on the State
Super website, www.statesuper.
nsw.gov.au under each scheme’s
‘Resources’ section. Alternatively,
you can contact Customer Service
on 1300 652 113.
8
Pension Newsletter | 2015
Generally, your spouse or de facto
partner will only qualify for a reversionary
pension if you were in the relationship
before you retired and remained in that
relationship until your death
What your spouse or de facto partner
needs to do to claim their benefits
Let us know about the death
It is very important your spouse, de facto partner, other
family members or legal adviser contact State Super in
the event of your death. As soon as possible, a family
member, spouse or other representative should call State
Super on 1300 652 113.
This will help prevent overpayments which will then have
to be paid back. It will also speed up any reversionary
pension payments or other benefits that may be payable
to your family members.
If a SSS reversionary pension is payable, your spouse or
de facto partner will need to be aware of the time limits
for commuting the pension to a lump sum.
Relationship
Provide the necessary documentation
Upon receiving an application for a spouse or de facto
partner benefit, State Super will ask for a certified copy
of the death certificate and the documents outlined in
the table below to prove the relationship existed when
you retired and that it continued until your death.
Determination of entitlements payable
Once the documentation has been provided, State
Super will decide if your spouse or de facto partner is
eligible and, if they are, what pension they will receive.
This will depend on whether they can satisfy the
eligibility requirements.
Proof of relationship documents required
You were married to the claimant • Certified copy of your marriage certificate*
at the time of your pension
•A statutory declaration confirming that the marriage was still legally subsisting as at the date
commencement and remained
of death
married to the claimant at the time
of your death
•Proof of identity documents for you and your spouse (these are listed on the relevant
application form)*
• Statutory declaration from your de facto
The claimant was your de facto
partner at the time of your pension
•Additional supporting documentation, such as, but not limited to, statutory declarations from
commencement and remained
family and non-family members proving the existence of the relationship at the time of your
your de facto up to the time of
retirement, and its continuation until your death
your death
•Proof of identity documents for you and your partner (these are listed on the relevant
application form)*
* You may want to retain certified copies of this document with your papers to make it easier for your loved ones.
Important!
Where claims are made by more than one eligible person, the Trustee will decide the
most appropriate distribution of benefits amongst the claimants. For example, if you
were legally married to a person and in a de facto relationship with another person at
the time of your pension commencement and this continued to be the situation at the time of your death, then both your
marital spouse and de facto partner may be entitled to a spouse pension benefit. The Trustee has a statutory discretion to
determine to whom and in what proportion the pension benefit entitlement is payable. Please note that the total amount of
the pension benefit payable to all eligible applicants shall not exceed the amount of a single pension benefit entitlement.
9
We’re moving
forward
“Quality financial planning advice changes
lives. It improves wellbeing and fulfils
personal and financial goals that would
otherwise go unachieved. The right
advice can reduce feelings of uncertainty,
providing peace of mind for individuals
throughout their life.”
ichael Monaghan, Managing Director
M
State Super Financial Services
At State Super Financial Services
we’re taking a fresh look at how we do
things. Over the past year we focused
on delivering an even better experience
to our clients while we prepare for the
future and make sure we move with
the times.
An important step in this journey has
been to refresh our brand.
We’re excited to have a new brand
that looks and feels more like we do
– generous, knowledgeable and
positive. We want to share our brand
story with you.
Our brand story
Our core values have always been clear
to us. We have deep roots in the public
sector and we are proud of our heritage.
Our commitment to putting our clients’
interests first has always been our
priority.
We know from our clients, that our
planners have an impact well beyond
the financial. As part of our brand
development we wanted to capture what
it is about our culture that provides this
positive experience and has helped us
win our clients, trust and loyalty.
Our new brand has been developed
based on our values, culture and the
insights and feedback from our clients,
10
Pension Newsletter | 2015
staff, planners and partners. We hope
you like the result as much as we do.
Our new look
Our trading name is changing from
State Super Financial Services to
StatePlus.
The development of a new name
has allowed us to both acknowledge
our heritage and look to our future.
The word ‘State’ references not only
our foundation, but also our deep
expertise in mastering financial matters
for our clients in the public sector.
And ‘Plus’ refers to our flexibility to
go that extra mile to meet the needs
of our clients.
Our new logo and colours reflect our
generosity of spirit and positive outlook
on wealth management and life. The
colour orange is warm, optimistic
and friendly. And we have chosen
photography that enables us to tell the
unique stories of our clients’ fulfilling
and enriching lives.
A new website
Our website will have a great new
look. It will be easier to view on a
mobile and tablet and there’ll be
insights and education designed
especially for retirees or those thinking
about retirement.
State Super Financial Services
(SSFS) was established by the
Trustee of your superannuation
scheme over 25 years ago to
provide specialist financial planning
advice to public sector employees
and their families. With over
60,500 clients, SSFS has helped
thousands of people just like you
to achieve their lifestyle goals now
and throughout retirement. To find
out how SSFS can help you get
the most out of your money in
retirement call 1800 620 305.
Watch this space
Our new website will be rolled
out at the end of October.
You can find out more at
www.stateplus.com.au/preview.
If you are already a client of
SSFS, it’s important to remember
that your trusted planner will
continue working with you. Your
investments won’t change and
you can still do all the things you
do now.
For more information on the
relationship between State Super
and SSFS, refer to the back
page of this Newsletter.
The importance of
planning for aged care
Did
you
know
Aged care is a growing issue facing
many Australians. Whether you’re
making decisions for a parent, elderly
relative, partner or planning ahead
for your own needs, getting the right
advice is important.
All too often, we fail to make any
preparations for moving ourselves or
a loved one into an aged care facility
potentially causing emotional turmoil
for everyone involved. Planning ahead
for aged care can help:
•ensure the right outcome for
yourself or your loved one
•remove unnecessary stress
•limit the potential for family conflict
With an ageing population,
the demand and cost for
aged care is increasing
Currently, more than two million
people in Australia are aged 70 and
over, and approximately 45% of these
will use aged care services at some
point in the future. With an ageing
population, the demand and cost for
aged care is increasing. So, we all
need to carefully consider how we will
be affected and how we will access
the help we need now and in the
future.
For anybody entering aged care,
planning ahead can have a significant
impact on their options for lifestyle
•Approximately 45% of people over age 70 will use
aged care services at some time in their future
•Accommodation payments can range from
$350,000 to $550,000.
and comfort, entitlement to the Age
Pension and the fees paid to access
aged care services.
The earlier you can start planning,
the more lifestyle choices you and
your loved ones may have, such as
receiving care in your own home in
order to maintain independence, as
well as strategies to fund the costs
involved.
While the Government generally
subsidises a significant portion
of aged care costs, the fees for a
residential aged care service tend
to be significant and require careful
planning before you reach the point
where a decision needs to be made.
There are four types of fees that may
be payable in regards to residential
aged care:
required to pay, depending on their
level of assessable assets and
income.
•
Extra or additional services –
This may be an optional fee for
residents for ‘hotel-like’ services
to increase a resident’s comfort of
stay, such as a bigger room, choice
of menu, glass of wine with dinner,
daily newspaper and recreational
activities.
it is important you get
advice early as these
strategies may require
some lead time in
advance of moving into
the aged care facility
•
Accommodation payments – this
pays for the bed/room at the care
facility (i.e. accommodation cost)
and can range from $350,000 to
$550,000 in regional and capital
cities.
Strategies to manage costs and plan
a transition into aged care can be
implemented, but it is important you
get advice early as these strategies
may require some lead time in advance
of moving into the aged care facility.
•
Basic daily care fees – this
covers living costs such as meals,
electricity, cleaning and laundry
services. This fee is payable by
everyone and is set at 85% of the
basic Age Pension rate for a single
person.
If you’re planning your retirement or
helping a family member deal with the
challenges as they age, State Super
Financial Services can help.
•
Care fee – This is an additional
daily contribution towards the cost
of care that some clients may be
For more information on the
relationship between State Super and
SSFS, refer to the back page of this
Newsletter.
11
Do we have
your current
contact details?
So that we can communicate important information
regarding your benefit and keep you abreast of any
changes that could affect you, it is important that
we have your most up-to-date contact details.
How to update your contact details
•Complete STC Form 207 (available on our
website) and mail it to us
Have you
registered for
online access?
•Log in to your online member account
via our website
• Call State Super Customer Service
Contact us
Keep track of your State Super pension online via
the secure member login area.
The secure member login area provides you with
your own personal login and password, which
means you’re the only one who can access your
information.
Registering for online access enables you to:
Phone
1300 652 113
• view your member details
• update your contact details
• view your current fortnightly pension details
Website
www.statesuper.nsw.gov.au
•view your taxation details – including your
current tax free rate
Mail
• change your password
State Super, PO Box 1229
Wollongong NSW 2500
Email
[email protected]
To register for online access, simply go to
www.statesuper.nsw.gov.au, click on the
Member Login link for your scheme and complete
the new user registration details, or you can contact
Customer Service on 1300 652 113 for assistance.
State Super Financial Services (SSFS) who will be trading, as StatePlus, is a ‘for profit’ financial planning organisation wholly owned by the State Super Schemes
as an asset held within the STC Pooled Fund. However, SSFS has its own Board and Management team which is separate from the State Super Trustee. SSFS is
the holder of Australian Financial Services Licence 238430, ABN 86 003 742 756. State Super does not pay any fees to SSFS/StatePlus for the financial advice and
member education services it provides to State Super members. State Super is not a representative of SSFS/StatePlus and receives no commission when making
referrals to financial planning or member education services. Neither State Super nor the New South Wales Government take any responsibility for the services offered
by SSFS/StatePlus, nor do they or SSFS guarantee the performance of any service or product provided by SSFS/StatePlus.
12
Pension Newsletter | 2015
STCPEN0915
Please note that SAS Trustee Corporation (STC) is not licensed to provide financial product advice in relation to State Super Schemes. Reasonable care has been
taken in producing the information in this document and nothing in this document is intended to be or should be regarded as personal advice. In preparing this
document, STC has not taken into account your objectives, financial situation or needs. You should consider your personal circumstances and seek professional
advice before making any decision that affects your future.